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Australia inquiry into lost warship

The HMAS Sydney was the pride of Australia's World War Two fleet [Reuters/Australian DoD]

Julia Gillard, Australia's acting prime minister, said the aim of the inquiry would be to bring a better understanding of what happened for the families of those who died.

"More than 600 of our nation's finest sailors and airmen lost their lives and we still don't know exactly how [the ship] met her end," said Gillard, who is standing in for Kevin Rudd, the Labor prime minister, while he is abroad.

"This inquiry will have special significance to the families of those who lost loved ones"

Julia Gillard, Australian acting PM

"I know that this inquiry will have special significance to the families of those who lost loved ones."

The loss of the pride of the Australian fleet shocked Australia and sparked numerous searches to find the wreckage.

The Sydney was the biggest ship to be lost with no survivors from either of the two world wars.

Angus Houston, Australia's defence force commander, said he wanted the inquiry to find out what happened to the Sydney and why there were no survivors.

On the Kormoran, only 80 were killed and more than 300 sailors survived.